Fed’s Collins Says Higher Yields Could Reduce Need for Rate Hikes

10/13/2023 06:39
Fed’s Collins Says Higher Yields Could Reduce Need for Rate Hikes

Federal Reserve Bank of Boston President Susan Collins said that if the recent run-up in Treasury yields is sustained, it could lessen the need for further interest-rate increases from the central bank.

Federal Reserve Bank of Boston President Susan Collins said that if the recent run-up in Treasury yields is sustained, it could lessen the need for further interest-rate increases from the central bank.

“The rise in long-term yields implies some tightening of financial conditions,” Collins said Thursday in remarks prepared for a community banking conference hosted by the Boston Fed. “If it persists, it likely reduces the need for further monetary-policy tightening in the near term.”

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